Revive tax increases, stub out tobacco product use
2 years, 9 months ago

Revive tax increases, stub out tobacco product use

The Hindu  

Despite a relatively high degree of societal attention and debate spurring on the pace of COVID-19 vaccine development, the novel coronavirus pandemic has continued to remain a serious public health concern worldwide. Lost opportunity In short, there has been no significant tax increase on any tobacco product for four years in a row which is quite unlike the pre-GST years where the Union government and many State governments used to effect regular tax increases on tobacco products. GST Council should act The Union Budget exercise, however, is not the only opportunity to initiate a tax increase on tobacco products. The Goods and Services Tax Council could well raise either the GST rate or the compensation cess levied on tobacco products especially when the Government is looking to rationalise GST rates and increase them for certain items. GST Council meetings must strive to keep public health ahead of the interests of the tobacco industry and significantly increase either the GST rates or the GST compensation cess rates applied on all tobacco products.

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History of this topic

The Tobacco Trap: How flawed policies are undermining India's fight against addiction
19 hours, 34 minutes ago

The Tobacco Trap: How flawed policies are undermining India's fight against addiction

India Today  

In 2023, India became the first country in the world to mandate anti-tobacco warnings on Over-The-Top streaming platforms, such as Netflix and Amazon Prime. Despite early adoption of the World Health Organization’s Framework Convention on Tobacco Control and enacting the Cigarettes and Other Tobacco Products Act in 2003, India remains one of the world’s largest consumers of tobacco, with almost …

GST Council meets to decide on lower taxes on insurance policies, ATF inclusion
Trending News
2 days, 11 hours ago

GST Council meets to decide on lower taxes on insurance policies, ATF inclusion

Deccan Chronicle  

Jaisalmer: The 55th GST Council meeting which is expected to decide on reducing the tax rate on health and life insurance, besides considering rate rejigs on 148 items began here on Saturday. However, 18 per cent GST will continue on premiums paid for policies with health insurance cover of over Rs 5 lakh. The four-tier tax slab of 5, 12, …

55th GST Council Meeting: Raises tax on used car sales; postpones debates on insurance, 'sin' products
2 days, 19 hours ago

55th GST Council Meeting: Raises tax on used car sales; postpones debates on insurance, 'sin' products

New Indian Express  

The 55th Goods and Services Tax Council meeting, held in Jaisalmer, Rajasthan, under Finance Minister Nirmala Sitharaman on Saturday, deferred discussions on the much-anticipated proposal to restructure GST on insurance premiums. The GST Council also postponed discussions on the widely discussed rate rationalisation for various consumer items, including so-called ‘sin’ products. Under the current GST framework, e-commerce platforms face specific …

Proposed GST slab of 35 percent is a deterrent for growth
5 days, 7 hours ago

Proposed GST slab of 35 percent is a deterrent for growth

Deccan Chronicle  

The Government brought in historic tax reforms with the introduction of the Goods and Services tax in 2017, promoting simplicity, while reducing the tax burden. As per media reports, the Group of Ministers on GST Rates Rationalisation has recently proposed a new slab of GST at 35% over and above the existing 4 slabs to products such as aerated drinks …

GST Council Meeting: Industry eyes tax relief on health insurance premiums, higher levies on luxury items
1 week, 4 days ago

GST Council Meeting: Industry eyes tax relief on health insurance premiums, higher levies on luxury items

Live Mint  

Industry experts expect a reduction in GST rates on health insurance at the forthcoming GST Council meeting on December 21, 2024. However, if health insurance is exempted from GST for all or specified persons, the insurance companies would lose out on input tax credits to that extent and accordingly, the reduction in costs can be less than the amount of …

Retailers urge FM and GST Council not to go for higher 35 pc tax rate
1 week, 4 days ago

Retailers urge FM and GST Council not to go for higher 35 pc tax rate

Live Mint  

New Delhi, Dec 12 Indian Sellers Collective, an umbrella body of trade associations and sellers across the country, has urged the finance minister and the GST Council not to accept some of GST rate rationalisation suggestions, including the proposal for inclusion of a special rate of 35 per cent on some products. The sellers body is of the view that …

GoM proposes GST hike: Cigarettes, tobacco, aerated beverages may be hiked to 35%; GST Council decision on Dec 21
2 weeks, 6 days ago

GoM proposes GST hike: Cigarettes, tobacco, aerated beverages may be hiked to 35%; GST Council decision on Dec 21

The Hindu  

The GoM on GST rate rationalisation on Monday decided to hike tax on sin goods like aerated beverages, cigarettes, tobacco and related products to 35% from the present 28%, an official said. In total, the GoM on rate rationalisation will propose tax rate tweaks on 148 items to the GST Council. The four-tier tax slab of 5, 12, 18, and …

GST Council Considers Steep 35% Hike On Cigarettes, Tobacco Products
Trending News
2 weeks, 6 days ago

GST Council Considers Steep 35% Hike On Cigarettes, Tobacco Products

ABP News  

The Group of Ministers on Goods and Services Tax rate rationalisation has proposed significant changes to tax rates, including a hike on sin goods like aerated beverages, cigarettes, and tobacco products, increasing the tax to 35 per cent from the current 28 per cent. Under the proposed structure: Readymade garments costing up to Rs 1,500 will attract 5 per cent …

GST on cigarettes, tobacco, aerated drinks may rise to 35%: Report
2 weeks, 6 days ago

GST on cigarettes, tobacco, aerated drinks may rise to 35%: Report

India Today  

The Group of Ministers on GST rate rationalisation has proposed increasing the tax on products such as aerated beverages, cigarettes, and other tobacco-related items to 35%, up from the current rate of 28%, reported news agency PTI. GST RATE CHANGES DISCUSSED The GoM, led by Bihar Deputy Chief Minister Samrat Choudhary, met on Monday to finalise the proposed rate adjustments. …

GST on cigarettes, tobacco, aerated beverages likely to be hiked: Here’s what we know
Trending News
3 weeks ago

GST on cigarettes, tobacco, aerated beverages likely to be hiked: Here’s what we know

Live Mint  

The Group of Ministers on Monday, December 2 decided to hike the rate of goods and service tax charged on goods like aerated beverages, cigarettes, tobacco and related products to 35 per cent, from its current level of 28 per cent, reported the news agency PTI citing an official aware of the development. The four-tier tax slab of 5, 12, …

GST Council Meeting: what is cheaper and costlier
3 months, 1 week ago

GST Council Meeting: what is cheaper and costlier

The Hindu  

The 54th GST Council meeting, held in New Delhi on Monday announced several changes to the existing Goods and Services Tax slabs. The Council decided to reduce the GST rate on cancer drugs Trastuzumab Deruxtecan, Osimertinib and Durvalumab from 12% to 5%. Namkeens, or savoury snacks, will also become cheaper after the GST on extruded/expanded savoury food products is reduced …

Priorities askew with high insurance tax, cheaper fried snacks
3 months, 1 week ago

Priorities askew with high insurance tax, cheaper fried snacks

New Indian Express  

The GST Council, which reviews the goods and services tax levied on specific items and categories, has thoughtfully reduced the tax on a few cancer drugs and on educational institutions’ R&D services. But for reasons that are still cloudy, the council has also given cholesterol a boost by reducing the rate on fried snacks to 12 percent and rewarded high-fliers …

GST Council lowers tax on cancer drugs to 5%, to finalise cuts on health and life insurance premiums
3 months, 2 weeks ago

GST Council lowers tax on cancer drugs to 5%, to finalise cuts on health and life insurance premiums

New Indian Express  

MUMBAI: After much hue and cry over 18% GST on health and life insurance premiums, the GST Council in its 54th meeting on Monday reached a broad consensus on reducing taxes and decided to constitute a Group of Ministers to deliberate on the issue. In the meeting chaired by Finance Minister Nirmala Sitharaman, the GST Council also made several key …

GST mop-up in July up 10.3% to Rs1.82 lakh crore
4 months, 3 weeks ago

GST mop-up in July up 10.3% to Rs1.82 lakh crore

Deccan Chronicle  

New Delhi: India’s gross goods and services tax collection in July recorded a 10.3 per cent rise to over Rs 1.82 lakh crore. Total refunds stood at Rs 16,283 crore in July and net GST collection was Rs 1.66 lakh crore, showing a growth of 14.4 per cent. “The gross revenues from domestic activities grew 8.9 per cent to Rs …

A fresh start: On the Goods and Services Tax Council meet
5 months, 3 weeks ago

A fresh start: On the Goods and Services Tax Council meet

The Hindu  

The Goods and Services Tax Council was convened last week for the first time in nearly nine months. Apart from several industry-specific measures, a few of which will kick in with retrospective effect, the Council also opted to waive interest and penalty on tax dues for the first three years of GST, provided they are paid by March 2025. Beyond …

GST on milk cans reduced from 18 percent to 12 percent, propagandists try to imply that a new tax has been introduced
6 months ago

GST on milk cans reduced from 18 percent to 12 percent, propagandists try to imply that a new tax has been introduced

Op India  

On Saturday, June 22, Goods and Services Tax Council meeting took place where several key decisions were taken by the council. The Council… pic.twitter.com/FfUvl1Gi3d — Nirmala Sitharaman Office June 22, 2024 Shortly after the decision was announced, a social media narrative started to subtly push the agenda that a new 12% tax has been introduced on milk cans by Modi …

The tobacco epidemic in India
6 months, 3 weeks ago

The tobacco epidemic in India

The Hindu  

Tobacco is the most widely recognised preventable cause of disease and death in the world. The status of tobacco use in India The Global Adult Tobacco Survey, the Global Youth Tobacco Survey, and India’s National Family Health Survey capture the status of tobacco use in India. The Cigarettes and Other Tobacco Products Act 2003 has 33 sections governing the production, …

India's Tobacco Crisis: 1% GDP lost, 49% young adults smoke, per KPMG report
6 months, 3 weeks ago

India's Tobacco Crisis: 1% GDP lost, 49% young adults smoke, per KPMG report

Hindustan Times  

New Delhi, May 24: India’s growth story has amazed economists and financial experts. A report by KPMG Assurance and Consulting Services report titled Human-Centric Approach to Tobacco Control has revealed that India loses precious 1% of the GDP every year due to diseases and early deaths from tobacco use. India ranks second globally in tobacco and it is the highly …

An idea whose time has come: Sugar taxation could spell a healthier India
1 year ago

An idea whose time has come: Sugar taxation could spell a healthier India

Live Mint  

The G20 Leader’s Declaration under India’s presidency noted that only 12% of the targets set under the United Nations’ Sustainable Development Goals have been met. Given the routine consumption of sugar as part of daily diets and its high content in products like sugar-sweetened beverages, many countries have designed taxes linked to sugar content. The most common food category facing …

DC Edit | Lower GST, higher compliance
1 year, 5 months ago

DC Edit | Lower GST, higher compliance

Deccan Chronicle  

The 50th meeting of the Goods and Services Tax Council, chaired by Union finance minister Nirmala Sitharaman, was a milestone event in a myriad of ways. Besides changes in tax rates across certain segments, the meeting also took important decisions to facilitate trade and streamline compliances. A feather in the cap was the GST Council offering startups and private players …

Karnataka tobacco growers oppose suggestions for levy on tobacco products
1 year, 5 months ago

Karnataka tobacco growers oppose suggestions for levy on tobacco products

The Hindu  

The Federation of Karnataka Virginia Tobacco Growers’ Associations has opposed suggestions on imposition of additional on tobacco products. In a statement here, association president B.V. Javare Gowda referred to reports appearing in a section of the media on the suggestions for additional levy on tobacco products as ‘disposal levy’ and said any imposition of additional tax on tobacco products will …

GST has been a gamechanger for India’s economy
1 year, 5 months ago

GST has been a gamechanger for India’s economy

Live Mint  

Ahead of the launch of the goods and services tax on 1 July 2017, this newspaper on 6 June 2017 had published my piece titled ‘Indian GST: Unparalleled Tax Reform’ in which I had highlighted the unique features of India's GST regime such as the Dual GST structure; Integrated GST mechanism; invoice matching; single digital interface and the establishment of …

Duty hike on cigarette to have a nominal impact on prices, say experts
1 year, 10 months ago

Duty hike on cigarette to have a nominal impact on prices, say experts

Deccan Chronicle  

NEW DELHI: The duty hike on cigarettes by 16 per cent announced in the Union Budget 2023-24 would have a nominal impact of around 7-12 paise per stick across cigarette categories, according to experts. Following the announcement in the Budget 2023-24, excise duty on filter cigarettes of length more than 70 mm but not exceeding 75 mm will go up …

Why 16% tax on cigarettes won't stop explosion of tobacco related cancers in India
1 year, 10 months ago

Why 16% tax on cigarettes won't stop explosion of tobacco related cancers in India

India Today  

Tobacco taxation in India has always had discrepancies, and the Budget presented by Finance Minister Nirmala Sitharaman today did not address those discrepancies at all. DEVIL IN THE DETAILS "The 16 per cent increase in NCCD announced in the union budget effectively increases the overall taxes on cigarettes by only about 1.8 per cent, and its expected impact on the …

Revisit the tax treatment of tobacco products
1 year, 10 months ago

Revisit the tax treatment of tobacco products

The Hindu  

Adam Smith, in his famous work The Wealth of Nations, argued that commodities such as sugar, rum and tobacco, though not necessary for life, are widely consumed, and thus good candidates for taxation. However, in India, tobacco taxes have not increased significantly since the implementation of the Goods and Services Taxation over five years ago, making these products increasingly affordable, …

Union Budget 2023-24: Why setting store by GST, fuel tax regressive
1 year, 11 months ago

Union Budget 2023-24: Why setting store by GST, fuel tax regressive

Firstpost  

The Goods and Services Tax collections have been surging recording Rs 1.50 lakh crore or so in December 2022. Fuel tax collections for the Centre too have been impressive at around Rs 8 lakh crore in each of the three financial years ending 2021. Add to this the Value-Added Tax imposed by state governments on fuel at the ballpark figure …

Farmers’ associations urge Centre to maintain stable taxation on tobacco products
1 year, 11 months ago

Farmers’ associations urge Centre to maintain stable taxation on tobacco products

The Hindu  

The Federation of All India Farmer Associations has made a pre-budget appeal to the Union government to maintain stable taxes on tobacco products in the country. He observed that the rising inflation had made consumers of finished tobacco products ‘extremely price sensitive’. Excessive rains and frequent cyclones are adding to the miseries of small and marginal tobacco farmers in the …

GST Council may take call on online game tax
2 years ago

GST Council may take call on online game tax

Deccan Chronicle  

NEW DELHI: The Goods and Services Tax Council, which is scheduled to meet on December 17, is likely to discuss a host of issues that have arisen following the recommendations of the GST fitment panel. “The Council may also discuss certain tax rate changes for various sectors like textile, insurance among others, but a rate cut in the tax on …

Explained | What is next on the agenda for the GST regime?
2 years, 5 months ago

Explained | What is next on the agenda for the GST regime?

The Hindu  

The story so far: The Goods and Services Tax Council, chaired by Union Finance Minister Nirmala Sitharaman, met for the first time in 2022 for a marathon two-day meet this week, just ahead of GST’s fifth birthday on July 1. Based on recommendations made by a Group of Ministers led by Karnataka Chief Minister Basavaraj Bommai, the GST Council has …

In charts, the GST’s five-year report card
2 years, 5 months ago

In charts, the GST’s five-year report card

Live Mint  

Five years ago, the goods and services tax was launched as one of India’s biggest reforms in recent years, with the purpose of making indirect taxes “good and simple". View Full Image Chart-1 The GST regime has completed five years and the guaranteed compensation for loss in revenue to states ceases to exist. View Full Image Chart-2A View Full Image …

GST Council bites the bullet
2 years, 5 months ago

GST Council bites the bullet

Hindustan Times  

Decisions taken in the 47th Goods and Services Tax Council meeting are on expected lines. The five-year window for guaranteed revenue compensation to states, which was a part of the original federal agreement on GST, has not been extended. While the argument might not be palatable to state governments, especially those ruled by the Opposition, phasing out the guaranteed compensation …

Strengthening the GST regime
2 years, 5 months ago

Strengthening the GST regime

Hindustan Times  

The two-day meeting of the Goods and Services Tax Council that starts on Tuesday is the 47th of the body – but it is likely the most important to date. When the GST law was passed in 2017, states were assured they would be compensated for the potential loss of revenue on account of moving to the GST regime. The …

India Cracked Down on Tobacco Smoking But 'Paan Masala' Brands Still Enjoy Celebrity Endorsement
2 years, 6 months ago

India Cracked Down on Tobacco Smoking But 'Paan Masala' Brands Still Enjoy Celebrity Endorsement

News 18  

Despite the widespread awareness of the associated harms, tobacco usage continues to be one of the most serious health challenges in India. India actually faces a more acute health burden due to smokeless tobacco products such as gutka, paan, paan masala, khaini and zarda. Dual Burden of Smoking and Smokeless Tobacco in India Tobacco use contributes to over 9.5 per …

Budget 2022: Consumer Durables Makers Want FM Sitharaman to Reconsider Tax Slabs
2 years, 10 months ago

Budget 2022: Consumer Durables Makers Want FM Sitharaman to Reconsider Tax Slabs

News 18  

The economic impact of the Covid-19 pandemic in India has been largely disruptive. Here are a few key things that the consumer durables industry will expect finance minister Nirmala Sitharaman to address as she presents the Union Budget 2022. Reconsider tax slabs for certain categories to help address price hike issues The rationalisation of GST would play another crucial point …

Goods and Services Tax as an unfinished agenda
3 years ago

Goods and Services Tax as an unfinished agenda

The Hindu  

GST, or Goods and Services Tax, an institutional tax innovation intensively marketed in many countries by the International Monetary Fund and the World Bank, was wrapped in a “one nation one tax” package, and was accepted by India on the midnight of July 1, 2017. While the States have forgone a substantial part of their own tax revenue, they were …

Low tobacco tax, poor health
3 years ago

Low tobacco tax, poor health

The Hindu  

In India, 28.6% of adults above 15 years and 8.5% of students aged 13-15 years use tobacco in some form or the other. Yet, there has been no major increase in taxation of tobacco products to discourage the consumption of tobacco in the past four years since the introduction of the Goods and Services Tax in 2017 except for a …

GST regime is in crisis
3 years, 6 months ago

GST regime is in crisis

Hindustan Times  

The Goods and Services Tax Council will meet on May 28 after a gap of seven months. Many state governments, which are ruled by parties opposed to the Bharatiya Janata Party, have demanded a GST waiver on various kinds of medicinal supplies being used for treating Covid-19. Using GST Council meetings to tweak GST rates on various commodities – Gujarati …

‘Withdraw COTPA Amendment Bill’
3 years, 11 months ago

‘Withdraw COTPA Amendment Bill’

The Hindu  

The proposed Cigarettes and Other Tobacco Products Act Amendment Bill, 2020 has drawn flak from the Federation of All India Farmers’ Associations on the grounds that the amendments would adversely impact legal cigarette trade while giving a huge boost to the ‘ever-growing illicit cigarette business in India’. FAIFA, a non-profit organisation representing the cause of farmers and farm workers of …

Curbs on tobacco products will help the fight against Covid, boost the economy
4 years, 2 months ago

Curbs on tobacco products will help the fight against Covid, boost the economy

Hindustan Times  

The Covid-19 pandemic has pushed us to adapt to a new normal, retrospect on underlying behaviours towards health and shun old harmful habits that are detrimental to one’s health and that of others. In India, an estimated 1.3 million deaths are accounted for as due to the use of tobacco A recent review of studies by public health experts convened …

GST council urged to hike compensation cess on tobacco products
4 years, 3 months ago

GST council urged to hike compensation cess on tobacco products

The Hindu  

Public health groups, along with doctors and economists, have urged the GST Council to increase compensation cess on all tobacco products that can provide an additional tax revenue of ₹49,740 crores. “Increasing compensation cess on all tobacco products, including bidis, is a winning proposition for government as it will provide the much-needed additional tax revenue for COVID-19 stimulus package for …

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